Singapore SMBs to spend $157M on printing

SINGAPORE: Small and medium businesses (SMBs or companies with up to 999 employees) in Singapore are set to spend US$157 million on printers and printing supplies, in all of 2008, up 5 percent over 2007. Printing supplies will account for the bulk of the spending at 79 percent of the total, according to the latest study by Access Markets International (AMI) Partners, Inc.

“About 83 percent of the spending on printers and print suppliers will come from SBs (small businesses, or companies with up to 99 employees) in Singapore,” says Cindy Tan, Singapore based Senior Research Analyst at AMI-Partners. “There will be a higher penetration for monochrome printers among SBs, most adopting laser single function and inkjet single function printers.”

Similarly, monochrome laser single function systems will be the most commonly used printers by MBs (medium businesses, or companies with 100-999 employees) as their basic workhorse machines. MBs will see a higher pickup for both color and monochrome document management systems with multiple functions that provide networking, collating, stapling and security features. Currently, more than 60 percent of MBs use at least one such document management system.

“More than 90 percent of SMBs in Singapore deploy manufacturers’ original printing supplies,” Tan says. “That’s because of good marketing campaigns on using original cartridges or toners and the effectiveness of the printing supplies’ loyalty programs.”

The recent economic turmoil may impact the printing consumables market to some extent. SMBs will potentially be looking at cost cutting measures to tide them though these difficult times. This in turn may create opportunities for non-original or third party printing suppliers to gain market share in the printing supplies space.

Less than 50 percent of Singapore SBs currently do not have any arrangement with a channel partner or supplier for printing supplies replenishment as they tend to purchase lower cost printers such as monochrome inkjet and laser printers. In contrast, more than 50 percent of MBs have an existing arrangement for supplies replenishment with their print vendor.

“Many SMBs are also exploring the feasibility of leasing options to manage capital costs,”  Tan says. “Apart from printing consumables, rising paper consumption in the office is also an increasing concern for environmentally friendly and cost conscious management. It is necessary to streamline processes or utilize innovative printing solutions to enable SMBs to reduce costs and increase productivity.”

Given the current economic situation, printing vendors have to look at various means to translate cost savings, including introducing lower cost per page printing to entice SMBs to continue to use original supplies. Vendors can also partner with software companies to provide printing solutions to manage printing costs for their customers. With retail and resellers being the more popular channels for printer purchases among SMBs, gaining their commitment to drive sales and mindshare will be vital for vendors to increase their market share.